PayPal Joins Microsoft to Bring "Buy Now" Buttons to Copilot
Microsoft is adding a checkout button directly to its AI chat window. With the launch of "Copilot Checkout," users can now complete a purchase on Copilot.com without clicking through to a retailer's website. PayPal serves as a key partner in this rollout, providing the payment backend that allows the AI to handle transactions.
The move marks a shift in how AI assists with shopping. Rather than just researching products, Copilot is now using the Agentic Commerce Protocol (ACP)—a framework that allows AI agents to exchange data with retailers—to move from discovery to payment in a single conversation. For a user, this means a chat about the best ergonomic chairs can end with a PayPal-powered "buy" button right in the interface.
The Engine Behind the Transaction
The partnership makes PayPal a primary financial layer for Microsoft’s AI-driven shopping. While Microsoft handles the search and the chat interface, PayPal manages the payment processing. This setup allows Microsoft to offer a streamlined experience where the retailer remains the merchant of record, but the user avoids the multi-step process of opening new tabs and re-entering credit card details.
This integration follows a massive spike in AI-assisted shopping. Data from Adobe shows that AI-driven e-commerce traffic jumped nearly sevenfold during the 2025 holiday season compared to the year prior. By embedding PayPal into Copilot, Microsoft is attempting to turn that increased interest into direct sales.
Expanding the Retail Network
Copilot Checkout is already live through several major retail platforms:
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Shopify: Merchants are being enrolled in the program by default, though they have the option to opt out.
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Etsy: Sellers can now have their products featured and sold directly within AI chat interfaces without additional configuration.
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Merchant Program: Microsoft has launched a dedicated "Copilot Merchant Program," allowing brands to upload real-time inventory and product specs so the AI can suggest their items more accurately.
Beyond the checkout button, PayPal’s role involves managing the post-purchase cycle. Through the ACP framework, PayPal will handle order tracking and dispute resolution within the Copilot environment, keeping the entire shopping loop inside the chat.
A Targeted Rollout
While the goal is to make AI shopping a standard feature, the initial rollout is focused on Copilot.com. By linking its 400 million active users to the Copilot ecosystem, PayPal is positioning itself as the primary wallet for AI-driven commerce.
As Microsoft gradually expands these features into the Windows and Microsoft 365 environments, the ability to buy products through a conversation is expected to move from a web-based experiment to a core feature of the desktop experience.